Credit Card Advance Loans - Still the Best Alternative

Credit Card Advance Loans - Still the Best Alternative
By Gaston Castro


In attempt to pull the country out of a recession, get people spending again, rejuvenate home sales, lower the unemployment rate and keep small businesses alive, various programs have been developed. Some have been successful and others have served as lessons learned.

Owners of gas guzzlers were offered cash for clunkers to be used towards the purchase of a new, more fuel efficient vehicle. First time home buyers are being offered tax credits and the Small Business Administration developed the American Recovery Capital (ARC) loan program, in attempt to boost lending to small business owners who've been having difficult times securing bank funds. Now, however, according to Business Week, Senator Olympia Snowe (R-Me.) is pushing to end the program she helped create.

According to the office of Management and Budget, the loans are projected to default at rates approaching 60%. Based on these statistics, one might say that the credit card advance loan is a better option for small business owner who need business financing, but don't qualify for traditional bank loans.

The ARC loan program was criticized by small business owners for requiring too much paperwork and having minimal bank participation. Credit card advance loans, on the other hand, only require a two-page application and instead of only $35,000 (the ARC loan limit), credit card advance loan providers have made business funds of up to $500,000 available to small business owners across the United States and in Canada as well. Plus, merchants only have to meet minimal requirements to qualify for credit card advance loans.

$255 million dollars were set aside for the ARC loan program. However, as of now, only about $131 million dollars has been distributed.

Regardless of the fate of the ARC loan program, qualified merchants will continue to have access to business funds through credit card advance loans.

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Gaston C. writes articles about Credit Card Advance loans for Merchant Resources International.

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If you have decent credit, you might want to consider a government sponsored SBA loan

In light of the current economic crises, the Obama administration has taken steps to make it easier for small business owners to gain access to working capital through their SBA program.

Of course not everyone is eligible, and it is not as easy to get as a credit card advance; but it is an alternative that may be worth looking into.

You can find out more about this funding program by visiting the government website at; http://www.sba.gov/financialassistance/borrowers/index.html

The Pitfalls of a Merchant Cash Advance.

Inc Magazine wrote an article a while back about some of the more negative aspects of the Merchant Cash Advance industry. Although it shows a very negative one-sided view of the industry, I still think it is important to share both sides of the issue.

The article points to a case where a merchant was mistreated by a merchant cash advance provider. I assure you that is the exception to the rule. Most providers are ethical business people who follow strict guidelines.

It just goes to show you how important it is to do some background checks of your own before handing over your sensitive financial information to them. You can do that at the Better Business Bureau's web site.

The article is here:

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